AGREEMENT


This  Agreement  between  ESSENTIAL  REALITY,  INC., a Nevada  corporation  (the
"Company"), and JAY GELMAN ("Executive") is hereby entered into on July 26, 2004
effective as of July 1, 2004.


In  consideration of the mutual  promises,  terms,  covenants and conditions set
forth herein and the performance of each, it is hereby agreed as follows:

1. Employment and Duties.  During the period  beginning  effective as of July 1,
2004 and ending on June 30,  2006,  the Company  shall  employ  Executive on the
terms and conditions  herein set forth.  Executive's title shall be Chairman and
Chief Executive Officer. Executive shall perform such duties as are commensurate
with his titles,  and shall have such other authority as shall from time to time
be designated by the Board of Directors of the Company.  Executive  accepts this
employment upon the terms and conditions  herein  contained and agrees to devote
his full time,  attention  and efforts to promote and further the  business  and
services of the Company.

2.  Compensation and Other Benefits.  For all services  rendered by Executive to
the Company, the Company shall compensate the Executive as follows:

      (a)   Base Salary and Bonus. The base salary payable to Executive shall be
            at the rate of $300,000  per year  through  June 30, 2005 and at the
            rate  of  $350,000   per  year   thereafter,   payable  in  periodic
            installments  in  accordance  with  Company  practice.  The Board of
            Directors  may from time to time award  bonuses to  Executive  in an
            amount equal to Executive's  salary.  The payment of base salary and
            bonuses shall be subject to all applicable federal,  state and local
            withholding   taxes,   social   security   deductions   and  similar
            obligations.

      (b)   Vacation. Executive shall be entitled to four weeks of paid vacation
            during each  12-month  period of his  employment  hereunder at times
            mutually  acceptable to Executive and the Company.  Unused vacations
            will be carried forward and accumulate.

      (c)   Other  Compensation  and  Benefits.  Executive  shall be entitled to
            participate in the Company's  group health  insurance plan and shall
            be awarded such other  benefits and  perquisites  as the Company may
            from time to time make available to him.

      (d)   Reimbursement.  The Company shall  reimburse  Executive for properly
            documented expenses which are incurred by Executive on behalf of the
            Company.

      (e)   Car.  Executive  will receive a $750 per month car allowance and the
            Company will also  reimburse  him for garage,  fuel and  maintenance
            costs for this car.

      (f)   Grant of Options.  Upon adoption of the Essential Reality 2004 Stock
            Plan (the "Plan"), the Company will grant to Executive options under
            the Plan in an amount and on terms to be  determined by the Board of
            Directors.

3.    Termination; Rights of Termination.

      (a)   This Agreement and  Executive's  employment may terminate in any one
            of the following ways:

            (i)   The death of Executive;

            (ii)  A notice of  resignation  by the  Executive  presented  to the
                  Company;

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            (iii) The  Board  of   Directors   of  the  Company  may   terminate
                  Executive's  employment  after  ten  days'  written  notice to
                  Executive for Cause, which shall be defined to mean:

                  (A)   The failure by  Executive to  substantially  perform his
                        duties  hereunder,  other  than  (except as set forth in
                        Section (B)) any such failure resulting from Executive's
                        incapacity  due to  physical  or mental  illness,  after
                        being  notified  in writing by the  Company  that he has
                        failed to  perform  his  duties  hereunder  and has been
                        given 30 days to cure any such failure;

                  (B)   If, because of illness or physical or mental  disability
                        or other incapacity ("Disability") which continues for a
                        period  in  excess  of four  months  in any  consecutive
                        16-month  period,  Executive  is unable to  perform  his
                        duties under this Agreement; or

                  (C)   The  conviction  of Executive  for any felony from which
                        all appeals have been exhausted.

            (iv)  It  is  understood,   however,  that  no  failure  to  achieve
                  financial  or other  business  results  shall  be a basis  for
                  termination of Executive for Cause.

            (v)   Executive  may terminate  his  employment  for Good Reason (as
                  hereinafter defined) at any time.

      (b)   For purposes of this Agreement, Good Reason shall mean:

            (i)   The   assignment   to  Executive  of  any  duties   materially
                  inconsistent with Executive's  positions,  duties,  authority,
                  responsibilities  or  reporting  requirements  as set forth in
                  Section 1; or

            (ii)  At any time during the term of this Agreement,  a reduction or
                  material delay in payment of  Executive's  total cash, and (to
                  the extent in the Company's control) equity-based compensation
                  and benefits from those  required to be provided in accordance
                  with the  provisions of this  Agreement,  or the breach of any
                  other material provision of this Agreement;

      (c)   In the  event of a  termination  of  Executive's  employment  by the
            Company  other  than for Cause,  or by  Executive  for Good  Reason,
            Executive  shall in  addition  to his other  rights and  remedies be
            entitled to receive in a lump sum an amount equal to three times the
            base  salary (net of  withholding  and social  security  taxes) that
            would be payable to him by the Company from the date of  termination
            through June 30, 2006 had his employment hereunder continued through
            such date.

      (d)   Executive  shall  not be  obligated  to  seek  other  employment  in
            mitigation  of the  amounts  payable  under  any  provision  of this
            Agreement.  The obtaining of any such other  employment  shall in no
            event effect any reduction of the Company's  obligations to make the
            payments and arrangements required to be made under this Agreement.

4.    Non-Compete and Confidentiality

      (a)   Subject  to  the  following  sentence,  Executive  will  not,  while
            employed by the  Company  and for a period of 12 months  immediately
            following the termination of his employment, directly or indirectly,
            for himself or on behalf of or in conjunction with any other person,
            persons, company,  partnership,  corporation or business of whatever
            nature:  establish,  enter  into,  be  employed  by or for,  advise,
            consult  with  or  become  a  part  of,  any  company,  partnership,
            corporation  or other  business  entity  or  venture,  or in any way
            engage in business for himself or for others,  in  competition  with
            the Company.  If this  Agreement is  terminated by the Company other
            than for Cause (excluding  termination by Executive for Disability),
            or by Executive for Good Reason,  Executive  shall not be subject to
            any  non-competition or similar  restrictions  whatsoever  following
            termination of this Agreement.


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      (b)   Executive  shall not at any time,  knowingly  and  without the prior
            written   consent  of  the  Company   which  consent  shall  not  be
            unreasonably  withheld,  use for his own  benefit or disclose to any
            person, company, partnership, corporation or business for any reason
            or purpose whatsoever,  any confidential information of the Company.
            For the purposes hereof,  confidential  information will not include
            any  information  which is in the  public  domain  or known to other
            unrelated  parties in the Company's  industry other than as a result
            of Executive's breach of this provision.

      (c)   If any  provision  contained in this Section 4 is  determined  to be
            void, illegal or unenforceable,  in whole or in part, then the other
            provisions contained herein shall remain in full force and effect as
            if the  provision  which  was  determined  to be void,  illegal,  or
            unenforceable had not been contained herein.

      (d)   The courts  enforcing this Agreement shall be entitled to modify the
            duration and scope of any restriction contained herein to the extent
            such  restriction  would  otherwise  be   unenforceable,   and  such
            restriction as modified shall be enforced.

5.    Indemnification.

      (a)   The  Company  shall  indemnify   Executive  to  the  fullest  extent
            permitted by law.

6.    Miscellaneous.

      (a)   Complete   Agreement.   This   agreement  sets  forth  in  full  all
            understandings  of the parties  with  respect to the subject  matter
            hereof, and it may be amended or terminated only in writing.

      (b)   Costs.  In the event that the  Executive  shall prevail in any legal
            proceedings  between  the  Company  and  the  Executive  as  to  the
            interpretation of this Agreement, including the defense by Executive
            against legal  proceedings  instituted  by the Company,  the Company
            shall  reimburse  Executive for his out of pocket costs and expenses
            with  respect  thereto,  including  reasonable  attorney's  fees and
            expenses.

      (c)   Notice. Whenever any notice is required hereunder, it shall be given
            in writing  addressed to the Company at 15-15 132nd Street,  College
            Point, NY 11356, and to Executive at 27 Copper Beech Lane,  Lawrence
            NY 11559.

      (d)   Governing  Law;  Resolution  of Disputes;  Service of Process.  This
            Agreement  shall in all respects be construed  according to the laws
            of the State of New York. Service of process shall be effective when
            given in the manner provided for notices hereunder.



IN WITNESS  WHEREOF,  the  parties  have signed  this  Agreement  as of the date
aforesaid.



ESSENTIAL REALITY, INC.

BY: /s/ Andre Muller,
    -----------------------------------
Andre Muller, its President


EXECUTIVE:

/s/ Jay Gelman
--------------------------------------
Jay Gelman


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